HXPP(SZ:002228)2021-04-20 16:00Financial Performance - The company's operating revenue for 2020 was ¥12,006,566,056.57, an increase of 8.20% compared to ¥11,096,782,559.30 in 2019[16]. - The net profit attributable to shareholders for 2020 was ¥290,079,358.76, reflecting an increase of 8.73% from ¥266,799,359.28 in 2019[16]. - The net profit after deducting non-recurring gains and losses was ¥240,500,328.32, up 10.69% from ¥217,264,214.92 in 2019[16]. - The total profit for 2020 was CNY 387,565,390.14, reflecting an 8.03% growth year-on-year[45]. - The basic earnings per share for 2020 was ¥0.24, a 4.35% increase from ¥0.23 in 2019[16]. - The weighted average return on equity for 2020 was 8.98%, down from 9.32% in 2019[16]. - The company reported a net cash flow from operating activities of ¥349,534,205.50, a decrease of 10.62% from ¥391,068,971.93 in 2019[16]. Assets and Liabilities - The company's total assets at the end of 2020 were ¥8,130,486,956.15, a 24.85% increase from ¥6,512,305,837.19 at the end of 2019[17]. - The net assets attributable to shareholders increased by 13.97% to ¥3,453,290,671.71 at the end of 2020, compared to ¥3,029,964,985.03 at the end of 2019[17]. - The company's cash and cash equivalents at the end of 2020 amounted to CNY 69,150.80 million, a 35.08% increase from the beginning of the year[32]. - The company's inventory at year-end 2020 was CNY 1,399,770,453.46, representing 17.22% of total assets[86]. - The company's long-term borrowings increased to CNY 320,000,000.00 during the reporting period[86]. Dividend Distribution - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares (including tax) based on the total share capital as of the record date for the 2020 equity distribution[4]. - The company’s cash dividend policy distributed CNY 1.00 per 10 shares, representing 41.84% of distributable profits, reflecting a commitment to shareholder returns[53]. - The company distributed a cash dividend of 1.00 CNY per 10 shares, totaling 123,862,933.90 CNY for the year 2020, which represents 42.70% of the net profit attributable to ordinary shareholders[126]. - The company’s cash dividends for 2018, 2019, and 2020 were 58,475,847.40 CNY, 116,953,607.40 CNY, and 123,862,933.90 CNY respectively, showing a consistent increase in dividend payouts[131]. Operational Efficiency and Strategy - The company has established a standardized production model to enhance efficiency and reduce costs[26]. - The company focuses on high-end corrugated boxes and packaging materials, emphasizing quality and environmental sustainability[25]. - The company aims to focus on sustainable development, optimizing product structure, and enhancing intelligent manufacturing in its 2021 strategic goals[111]. - The company plans to develop green packaging products, which are characterized by low material consumption and recyclability, aligning with national environmental policies[113]. - The company intends to accelerate automation and smart manufacturing to improve operational efficiency and product competitiveness[115]. Market Position and Client Relationships - The company has established a strong brand presence with major clients including Haier, Midea, and Dell, enhancing its competitive advantage in the market[37]. - The company maintained strong relationships with major clients, including Budweiser and Haier, while successfully onboarding new clients such as Haitian and Nongfu Spring, laying a solid foundation for future growth[50]. - The company has over 50 production bases across the country, positioning it among the leaders in the domestic packaging industry[42]. Research and Development - The company invested CNY 194.26 million in R&D, accounting for 1.62% of operating revenue, with a total of 381 patents obtained, including 8 invention patents[51]. - The number of R&D personnel rose by 88.79% to 606, representing 5.85% of the total workforce[78]. Environmental Responsibility - The company is committed to social responsibility, focusing on economic development and environmental protection[177]. - The company strictly adheres to environmental protection laws and has implemented measures for pollution control, energy conservation, and emission reduction[184]. - The company has established an emergency response plan for environmental incidents and conducts regular training and drills to enhance response capabilities[186]. - The company reported no significant environmental incidents or additional environmental information that needed to be disclosed[188]. Risks and Challenges - The company faces macroeconomic risks that could impact demand in the packaging industry, as it is closely tied to consumer retail sectors[117]. - The competitive landscape in the corrugated packaging industry is intensifying, with regional players emerging and increasing market share[118]. - Raw material costs, which account for over 65% of operating costs, pose a risk due to potential price fluctuations in paper products[119]. - The company experienced management risks due to rapid growth, leading to increased complexity in organizational structure and decision-making processes[120]. Corporate Governance - The board of directors confirmed the accuracy and completeness of the annual report, ensuring accountability for any misleading statements or omissions[3]. - The company confirmed that there were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[144]. - The company has not engaged in any significant litigation or arbitration matters during the reporting period[155].